Focus on the HSBC flash PMI for China at 0230 GMT where another weak reading would add to fears of a hard landing for Australia's single biggest trading partner.

Aussie dollar down at $0.9889, from $1.0017 late on Wednesday, having shed 3 percent this week. Key support seen around $0.9863 ahead of $0.9818, with immediate resistance at $1.0055.

Rush to safety sends Aussie debt futures to new highs. The 10-year contract rose 0.11 points to an all-time record of 96.225 as the December contract rolled over into March. Three-year contract up 0.055 points to 97.000.

The New Zealand dollar was at $0.7485, from Wednesday's late local level of $0.7567, having dipped more than 3 pct this week.

Support found at $0.7475, then $0.7450, with the previous day's high of $0.7578 likely to cap the topside.

Aussie, kiwi even lose ground to the euro which rose to A$1.3112. It also firmed on the kiwi to NZ$1.7317 from a low of NZ$1.7173 on Wednesday.

The safety bid sees the yen at two week highs against the Pacific pair with the Aussie at 77.22 and the kiwi at 58.43.

Risk appetite took a hit offshore as Germany warned the crisis could take years to solve. A slide in commodities, particularly gold and oil, on fears for global growth add to the Antipodeans' pain.

Australian car sales dipped 0.7 pct in November, as a pullback in passenger vehicles outweighted a jump in the sport utility sector.

Kiwi unmoved after data shows NZ manufacturing activity slows to its weakest level in two-and-a-half years in Nov.

NZ government bonds jump, with local yields up to 8 bps lower.

Copyright Reuters, 2011